2023-08-24 11:00:00
GEOPOLITICS – Dedollarization, multilateralism or even the accession of new members were the main topics discussed at the BRICS summit, a political and economic bloc made up of five “emerging” countries (Brazil, Russia, India, China and South Africa) . Meeting in Johannesburg from August 22 to 24, 2023, the Heads of State present agreed yesterday, Wednesday August 23, 2023, to open this organization to new countries. Absent from the largest South African city, Russian President Vladimir Putin gave an opening speech by videoconference. He again denounced the sanctions “illegal” and frost “illegitimate” assets by the United States while his South African counterpart, Cyril Ramaphosa, expressed concern “about the increasing use of international payment systems in geopolitical conflicts”. China, through its President Xi Jinping, has called for “to work in favor of multilateralism”.
If the term BRIC (for Brazil, Russia, India and China) appeared in 2001, this political and economic alliance was formed in 2009, in the aftermath of the 2008 financial crisis. i.e. South Africa, only joined the bloc in 2011, renamed “BRICS” on occasion. Representing 31.5% of global GDP – before the G7 which represents 30% – and 41% of the world’s population, this bloc intends to constitute an alternative to “Western hegemony”, on the geopolitical, economic and even financial level by advocating a common currency.
A “multipolar world order”
Vladimir Putin, under an arrest warrant from the International Criminal Court, sent his Foreign Minister, Sergei Lavrov, to represent him at the summit. In his opening speech, delivered by videoconference, he castigated Western countries, the UN and its role in the grain crisis while stressing the importance of the BRICS on the world stage.
“The countries [du bloc] defend the formation of an equitable multipolar world order, in which each nation has the right to its own model of development”, did he declare. A model opposed to “the desire of some countries to maintain their neocolonial hegemony, which has led to a crisis in Ukraine”. A war that the Russian president described as “cruel”and to which Moscow “wants to end it”.
Putin, who once again denounced the “illegitimate sanctions and the illegal freezing of assets” by the United States, withdrew from the grain agreement, which expired in mid-July. “Russia is deliberately hampered in the supply of grain and fertilizers abroad (…) This was clearly manifested in the implementation of the so-called grain agreement, concluded with the participation of the secretariat of ONU”, he hammered. After expressing his “reconnaissance” to BRICS members “who attempt to reach a just settlement by peaceful means”, the head of the Kremlin hailed the alliance’s plan to create transcontinental transport routes. A project that Russia, next president of the BRICS and host of its 16th summit in 2024 in Kazan, will have to carry out.
Cyril Ramaphosa expressed, in his opening speech, his concern about “to the increasing use of international payment systems as a means of pressure in geopolitical conflicts”. An attitude that promotes dedollarization, particularly in trade, operated in local currencies, between the BRICS and their neighboring states.
“The Worry” of the South African president follows the exclusion in 2022 of Russia by the West from the payment system “Swift” as a sanction. Washington also uses its motto to pressure Russia, by landed more than $330 billion from its central bank. According to the International Monetary Fund, 70% of world trade is done in US dollars, which represents environ 57% world foreign exchange reserves.
Regarding the BRICS, the South African President recalled that this alliance “defends the interests of the South and its members wish to broaden interaction with all countries striving for a more inclusive world order. The BRICS summit is designed to serve the cause of peace and progress”he added.
“Agreement” for the admission of new members
On Wednesday, its foreign minister, Naledi Pandor, announced a “accord” on the issue of BRICS enlargement. “We have adopted a document that sets out guidelines, principles and review processes for countries wishing to become members,” she announced. For its president, “an enlarged BRICS will represent a diverse group of nations with different political systems and sharing the same desire for a more balanced world order.”
About forty countries, including Argentina, Egypt, Algeria, Iran and Afghanistan have expressed their interest in joining this alliance. Their membership is a necessity for Chinese President Xi Jinping. “BRICS should work towards multilateralism and not create small blocs. We should bring more countries into the family,” he asserted. While Pretoria is concerned about the use of financial instruments for pressure purposes, Beijing is openly advocating for development “d’instruments financiers” specific to the BRICS. The Chinese president also announced the upcoming creation by this bloc of a research institute on artificial intelligence (AI).
Present at the summit, Brazilian President Lula believes for his part that “the G7 should no longer exist”. The BRICS, “very strong, politically and financially”want to be an alternative that embodies “an inclusive multilateralism”. Favorable to the admission of new countries, the Brazilian Head of State nevertheless insisted on the satisfaction “requirements that we are going to discuss in Johannesburg”. These have not yet been officially detailed.
According to several media, India, represented by its Prime Minister Narendra Modi, and Brazil are still on the defensive regarding new memberships, fearing a loss of influence within the bloc.
Denounced without ever being mentioned by name, whether for their motto, their sanctions against Moscow or their domination, the United States has affirmed that it does not see the BRICS as future “geopolitical rivals”. Washington hopes to maintain its “strong relationships” with Brazil, India and South Africa.
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